 |
FIGURE 1: BOX-PAK
(MALAYSIA) BERHAD LAST 5 YEARS SHARE PRICE TREND
|
**analysis based on 2017 annual report.
1.
GENERAL INTRO: This counter
core business is manufacturing and distribution of paper carton / boxes.
2.
NOTABLE POINTS:
a.
main operation at Johor,
Selangor and Vietnam, have plans to set up new manufacturing plant at Myanmar.
b.
major shareholder: Kian Joo Can
Factory Berhad 55% shares (in turn, another listed company, Can-One is major
shareholder of Kian Joo)
c.
losses in 2017 financial year
attributed to drop in gross profit, higher finance cost and investment cost on
setting up manufacturing plant in Myanmar.
d.
Malaysia corrugated cartons industry
is matured market with many players, the trade association has more than 70
members.
e.
sold carton boxes mainly for
consumer goods industry, e.g. electronics and electrical, footwear and
furniture industry
f.
reliant on paper suppliers to
obtain paper rolls for carton box manufacturing, pricing influenced by
international market price of paper pulps and old currugated cardboards, as
well as fluctuations in foreign currency exchange.
3.
IS THIS COUNTER A STRONG GROWTH
STOCK?
a.
REVENUE RANGE (million): ~ 552.7
million in 2017 annual report, this is a medium revenue company.
b.
SHARE PRICE: share price from
2012-2015 constant at around RM2.20, in mid 2016, started a downward trend of
share price, dropped from ~RM2.80 to current share price of ~RM1.
c.
EARNING PER SHARE (EPS): earning
per share in last 5 years are on decreasing trend, from 19.88 to -14.62 sen per
share, reported losses in two recent financial years.
d.
FUTURE POTENTIAL/PROSPECTS: facing
challenges, including rising cost of raw materials, in particular, testliners
and medium paper, increased ~20% in the 2017 financial year. Also facing
competition from other manufacturers, further pressure on profit margin. Due to
labour shortage, have reliance on foreign workers from Nepal, Vietnam and
Bangladesh
e.
CAPITAL EXPENDITURE (CAPEX): spending
on purchase of new fixed assets is 62.7 million, around 10% of total assets,
significant spending on new factory set up in Myanmar.
4.
IS THIS A STRONG DIVIDEND
STOCK?
a.
DIVIDEND YIELD: in 2017 report,
no dividend payout declared
b.
CONSISTENCY: no dividend payout
declared since 2015
5.
OTHER INDICATORS:
a.
CASH FLOW: cash flow is positive,
around 62.5 million
b.
SUPPORT BY INSTITUTIONAL
INVESTORS: there is no presence of institutional investors at top 30 major
shareholders list
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